Research On The Performance Of Series Mergers And Acquisitions Of GLS

With the rapid development of global economic integration,China has comprehensively entered a moderately prosperous society by 2020.The level of national economic development has been further improved,the per capita disposable income of residents has continued to increase,and the requirements for “clothing” have been developed towards “fashionable style” and “Accessible luxury”.With the steady improvement of China’s M & A market,mergers and acquisitions in the domestic clothing industry are also in full swing.As a clothing subdivision industry,the consumer and industry scale of the high-end women’s clothing industry has significantly increased.Due to the intensifying market competition,the results achieved by reducing costs and improving management are no longer significant.This article chooses the GLS as a case study.GLS has achieved the first comprehensive share of the high-end women’s clothing market in 2018.After going public in 2015,the company began to compete for market resources with the help of capital.From the first listing on April 22,2015 to the end of 2017,GLS has had five mergers and acquisitions.Compared with the research and analysis about the reasons and types of M&A,the consideration of performance has increasingly become the focus of industry and academia.In order to comprehensively and objectively analyze and evaluate the performance of GLS’s serial mergers and acquisitions,this article bases on the domestic economic development level and the status of the high-end women’s clothing industry to clarify the research significance.First,it expounds the current research status and theoretical basis of domestic and foreign research.Related articles are sorted out and summarized to select a set of suitable performance evaluation methods,which lays the foundation for the further case study.Second,this article introduces the content,amount and the corresponding motivations of this five mergers and acquisitions by using the GLS’s serial mergers and acquisitions as the main line.Through the use of event research method,comparative analysis of financial indicators and economic value-added method,this article respectively analyzes and evaluates the GLS’s serial mergers and acquisitions from three perspectives: short-term performance analysis,long-term performance analysis and comprehensive performance analysis.Based on the results of performance evaluation,this article concludes that the short-term performance improvement of GLS’s serial mergers and acquisitions is not satisfactory and the long-term performance improvement is significant.According to the research conclusions,the corresponding enlightenment and suggestions are given: in order to achieve comprehensively improvement in M&A performance and sustainable,healthy and stable development,the company should first set clear strategic goals and look for M&A targets;second,combine horizontal M&A with vertical M&A,focus on the integration of high-quality resources in the industry and the absorption of capital from the outside,and form its own industry chain step by step to optimize asset and liability structure;third,improve management capabilities of receivables,integrate the enterprise’s internal resource to improve the profitability and operation efficiency of total assets;last,maintain research investment and strengthen talent introduction efforts.It is hoped that the conclusions and Suggestions drawn from this study can provide help for the optimization of GLS company’s future operation and management and the formulation of its strategic development plan,and also serve as a reference for other similar companies to make M&A and follow up sustainable development.